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- Life is a short journey, lets prepare for our final destination...
This blog is opened to all. For non-muslims, lets share our interest in investment and for muslims we have extra investment to be prepared for. Lets Share Our Opinion! It is about MALAYSIA point of view.

Saturday, May 12, 2012

Do you afford to buy a house? Really!!?????

Assalamualaikum w.b.t.,

The news below make me a bit worry. What will happen to my children future? Ya! Allah s.w.t., please save me and my family aqidah. Please guide us. Amin.

Residential housing price is rocketing high. Many people are suffering to get their dreams house. With new policy from bank negara to filter out bad hire purchase borrower had stopped more people from buying house. Bank negara moved basically is a good move, but... The most will suffer with this policy basically people who work with private sectors. Why????

The basis of hire purchase is a balance of income to confirm the ability to pay back the loan. For private sectors, their clean income is after deducting EPF and Tax. The basis being used usually by separated to 1/3 for vehicle, 1/3 for housing and 1/3 for living/expenses. Due to this basis, many buyers failed to comply and do not have enough fund to buy their dreams house. Most of them think that they can depend to their EPF savings to withdraw their saving to cover the house purchase. Do they?

So what's the problem? Public sectors also buying house?

In next post, I'll write what the difference, why we need to make a move for betterment future and tips how to prepare ourself to buy house especially for new worker, in this crazy "1Malaysia price hike cannibal festival".

I still remember, I did many promise to write tips but due to time limitation, I can't. I'll try my best to post part by part while I'm still able to do so.

Wassalam.

PS: "Weekend also have to work. Tomorrow has to go to office to work. It is about life and living."

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Thestar: Thursday May 10, 2012

Rising value of properties a real concern

KUALA LUMPUR: The Government needs to address the issue
of affordability of residential properties as persistently high prices
have become an issue to many people.“We have computed the
affordability (issue). Prices have risen to a level that has created
some concern. In fact the International Monetary Fund (IMF) in its
Article 4 consultation report has mentioned that this is the main risk
or vulnerability facing the Malaysian economy: overvalued house prices,”Ratings Agency Malaysia Holdings Bhd (RAM) chief economist Dr Yeah Kim Leng said.
“It
is not a bubble yet largely because for certain segments the income
level is sufficient to absorb those kind of (high priced) houses. But
there comes a point where you will find declining demand largely because
of rising vacancies or declining rental yields that will help to cap
property prices,” Yeah told journalists at a press briefing yesterday
after RAM's annual general meeting.
Yeah expected an eventual
soft landing for the property market in Malaysia but also said that
developers should be ready for any change in market dynamics.

“Developers
must take the risk that should there be a slowdown or market crash
(that) they are in a position to absorb it without creating problems for
the banking sector or economy. But at this juncture we are quite
comfortable that most developers are going in (to the market) with their
eyes fully open,” Yeah said.
“Most of the property companies
that we have rated (credit rating) are fairly strong in their credit
quality. Overall we are looking at maybe certain smaller developers that
will be at risk but by and large I think that the property market is in
a sustainable basis. But watch out for too high prices that will create
affordability problems,” he added.
Meanwhile, RAM's CEO Foo Su Yin
said the agency expected corporate bond issuances for the whole of
Malaysia will total between RM80bil and RM85bil this year from about
RM70bil in 2011 noting that issuances had accelerated in the first four
months in 2012 compared to the previous year.
“The issuance in
the first four months of RM44bil has already exceeded what was (at the
level) half year last year so the RM80bil-RM85bil is achievable this
year. We expect most of the bond issuances to come from the
infrastructure and the banking sector,” Foo said.
On another
matter, Yeah said that the Malaysian economy should be fairly protected
against any economic shocks that comes out of Europe due to the ongoing
economic crisis there and that the first quarter economic growth may
even beat analysts expectations.
“Domestic demand has been fairly
robust and with slightly firmer exports we should be doing fairly well.
Nevertheless the risks still remain substantial because of the,
so-called, regime changes that had happened in Europe that put the whole
Euro at risk. Malaysia has so far been able to ride through the soft
patch in the global economy,” he said.
Meanwhile, on the issue of
the growing government debt or also known as deficits of presently
about 56% of GDP, Yeah said this figure may hover at about 56%-57% by
the end of this year and said debt should ideally be used to finance
productive investments to ensure future economic growth.
He also
said the risks from the non-bank lending sector also known as the shadow
banking system could be limited as its portfolio was relatively small
compared to total bank loans portfolio and may not pose a systemic risk
to the economy at this point in time.
“We may have however,
isolated problems arising but it should not pose a systemic risk to the
economy or banking sector,” he added.